Massachusetts Top Court Input Sought on Franchisees as Employees

A lawsuit by a group of 7-Eleven Inc. franchisees alleging they’re misclassified as independent contractors raises a novel question of whether Massachusetts law conflicts with federal regulations on franchise arrangements, the First Circuit said Monday, seeking input from the commonwealth’s top court.

The Massachusetts Independent Contractor Law presumes that any individual performing any service is an employee, rather than an independent contractor, and thus entitled to protection under Massachusetts minimum wage and related laws, the federal appeals court said. The presumption applies unless a business shows the individual is free from contractual or actual control and direction in the performance ...